- Litecoin struggles below $120, with key support at $110 as analysts watch for a breakout above $136 for bullish momentum.
- Whale accumulation and ETF speculation fuel optimism, but LTC must reclaim $140 to confirm a sustained uptrend.
Litecoin’s price volatility has increased, with LTC dropping below $120 amid broader market uncertainty. After a short-lived recovery, the cryptocurrency has reversed its gains, reflecting heightened selling pressure.
Analysts are watching key support levels, with a potential dip to $110 or even $98 if bearish momentum continues. Meanwhile, whale activity and speculation around a potential Litecoin ETF are fueling discussions about the coin’s long-term trajectory.
Litecoin Faces Resistance as Market Struggles
Litecoin attempted a short-term recovery but failed to sustain momentum. The cryptocurrency briefly reached $132, but a rejection at the 50% Fibonacci level ($129.38) led to a pullback. Currently trading at $119, LTC has dropped 6.06% intraday and 11% over the past week, bringing its market cap down to $9 billion.
Market analysts highlight a bearish engulfing candle, which invalidates the Morning Star reversal pattern that previously hinted at a bullish comeback. The LTC price trend remains range-bound, with an upper ceiling at $138 and a lower boundary near $98. Technical indicators show that Litecoin is testing the 38.2% Fibonacci level at $121, with immediate support expected around $111.
Crypto analyst, Ali Martinez, stated on X that Litecoin must close above $136 for a bullish confirmation. He noted that a decisive move past this level could trigger a sustained breakout, potentially pushing the price toward $150. However, failure to reclaim resistance could lead to a deeper correction.
Whale Accumulation Signals Market Confidence
Despite Litecoin’s price struggles, on-chain data suggests growing interest from large investors. Whale activity surged during a market dip triggered by Trump’s tariff announcement. Instead of selling, whales accumulated 84.8 million LTC, worth approximately $900 million at current prices.
This behavior indicates that institutional players saw Litecoin’s pullback as a buying opportunity rather than a cause for panic. The increased demand helped stabilize LTC’s price even as Bitcoin and Ethereum faced strong selling pressure. Analysts believe that if institutional accumulation continues, it could provide a solid foundation for Litecoin’s next rally.
The potential approval of a Litecoin ETF is another factor driving speculation. While no official confirmation has been made, market sentiment suggests that regulatory approval could significantly boostLitecoin’s adoption and liquidity. If ETF-related optimism persists, LTC may see renewed bullish momentum.
Litecoin’s Role in Web3 and Market Outlook
Litecoin is also expanding its presence in Web3 through the introduction of.LTC domains, as reported by Ethnews. In partnership with Unstoppable Domains, Litecoin has launched custom blockchain addresses, allowing users to replace long wallet addresses with personalized names. This feature aims to enhance security and simplify crypto transactions, positioning Litecoin as a key player in the decentralized web.
Meanwhile, market analysts remain divided on Litecoin’s next move. Crypto trader Daan pointed out that LTC has shown relative strength compared to other altcoins. He noted that Litecoin’s high timeframe chart remains solid, suggesting that if market sentiment improves, LTC could be one of the first altcoins to break out. However, he also warned that $140 remains a critical resistance level that needs to be reclaimed for further upside.
$LTC Has been one of the strongest coins the past couple of weeks.
The high timeframe chart still looks solid.
It just has this massive $140 level which it has failed to break so far. But keep an eye out for when that happens as it could result in a big move upwards.
The… https://t.co/xgffMA5iMK pic.twitter.com/b4UceR2lP4
— Daan Crypto Trades (@DaanCrypto) February 27, 2025
For now, Litecoin continues to consolidate, with strong demand at $111 and resistance near $138. If buyers manage to push past key resistance, LTC could target multi-year highs. However, failure to hold above $130 could lead to another correction toward $98 before the next major move.
